Continental Model vs. Small Asian Tigers

Attribute	Continental Model	Small Asian Tigers
Economic Development	Slow and steady growth	Rapid economic growth
Industrialization	Focus on heavy industries	Focus on export-oriented industries
Government Role	Strong government intervention	Government support for private sector
Foreign Investment	Less reliant on foreign investment	Dependent on foreign investment

Introduction

When it comes to economic development, two models that have gained significant attention are the Continental Model and the Small Asian Tigers. These models represent different approaches to economic growth and have been implemented by various countries around the world. In this article, we will compare the attributes of these two models and analyze their strengths and weaknesses.

Continental Model

The Continental Model is characterized by a focus on large-scale industrialization and government intervention in the economy. Countries that follow this model typically have a strong central government that plays a key role in economic planning and development. The goal of the Continental Model is to achieve rapid industrialization and economic growth through state-led initiatives.

• Government intervention in the economy
• Focus on large-scale industrialization
• Strong central government
• Rapid economic growth through state-led initiatives

Small Asian Tigers

The Small Asian Tigers, on the other hand, are characterized by their emphasis on export-oriented growth and free market policies. Countries that follow this model, such as Singapore, Taiwan, South Korea, and Hong Kong, have achieved rapid economic growth by focusing on exports and attracting foreign investment. The Small Asian Tigers prioritize economic liberalization and openness to international trade.

• Export-oriented growth
• Free market policies
• Rapid economic growth through exports and foreign investment
• Economic liberalization and openness to international trade

Comparison of Attributes

When comparing the attributes of the Continental Model and the Small Asian Tigers, several key differences emerge. One of the main distinctions is the role of the government in the economy. While the Continental Model relies on government intervention and central planning, the Small Asian Tigers prioritize market forces and free enterprise.

Another important difference is the focus of economic growth. The Continental Model emphasizes large-scale industrialization, while the Small Asian Tigers prioritize export-oriented growth. This difference in focus has led to varying levels of success for countries following these models.

In terms of economic performance, the Small Asian Tigers have generally outperformed countries following the Continental Model. The rapid economic growth achieved by countries like Singapore, Taiwan, and South Korea has been attributed to their export-oriented policies and openness to international trade. In contrast, countries following the Continental Model have often struggled to achieve sustained economic growth.

One area where the Continental Model has an advantage is in terms of social welfare and income equality. Countries that follow this model tend to have more robust social welfare programs and a more equal distribution of income. In contrast, the rapid economic growth of the Small Asian Tigers has led to income inequality and social disparities in these countries.

Conclusion

In conclusion, the Continental Model and the Small Asian Tigers represent two distinct approaches to economic development. While the Continental Model emphasizes government intervention and large-scale industrialization, the Small Asian Tigers prioritize export-oriented growth and free market policies. Each model has its strengths and weaknesses, and the success of a country's economic development strategy depends on various factors. Ultimately, the choice between these models will depend on the specific circumstances and goals of each country.